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Investment Foreign Dividend Investing, Guide to Foreign Dividend Investing

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TSJaySd P
post May 28 2020, 04:19 PM, updated 4y ago

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Hi Guys,

I've been scrambling on the internet for information on this, but the result is disappointing. Most of the related post is written from US citizen POV.

Hence, I would like to gather everyone's expertise here to discuss on this.

For a start, this is the Withholding Tax Rates 2020 by Deloitte :

https://www.google.com/url?sa=t&source=web&...mbYUAIjIAd8pKUb

For example, per my understanding, US impose 30% Dividend Withholding Tax. As a Malaysian, we can claim 15% back (must submit tax refund form). This effectively means, we are taxed at 15% from our dividend.

Is my understanding correct ?
Ramjade
post May 28 2020, 04:56 PM

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QUOTE(JaySd @ May 28 2020, 04:19 PM)
Hi Guys,

I've been scrambling on the internet for information on this, but the result is disappointing. Most of the related post is written from US citizen POV.

Hence, I would like to gather everyone's expertise here to discuss on this.

For a start, this is the Withholding Tax Rates 2020 by Deloitte :

https://www.google.com/url?sa=t&source=web&...mbYUAIjIAd8pKUb

For example, per my understanding, US impose 30% Dividend Withholding Tax. As a Malaysian, we can claim 15% back (must submit tax refund form). This effectively means, we are taxed at 15% from our dividend.

Is my understanding correct ?
*
Nope cannot. Malaysia does not have tax treaty with US which sucks. Hence we pay the full 30% tax on dividend.

You want tax free dividend country you are only limited to 4.
SG
HK - some will have China dividend tax of 10%
India
UK

First step
Open a bank account in Singapore. It will help you tremendously.
https://forum.lowyat.net/topic/1440794

Second step
Open a cheap international brokerage .
https://forum.lowyat.net/topic/4843925
https://forum.lowyat.net/topic/4744515
https://forum.lowyat.net/topic/3396549

Regarding dividend tax, sometimes it's ok to bite them. When the yield is high. For the yield to be high, price must drop.
Some countries like Germany and Canada have cheaper discount of dividend. Tax.

All information is provided in the links above. Kindly browse through them.
SUSMNet
post May 28 2020, 05:37 PM

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Does this applicable for realized gain as well?
TSJaySd P
post May 29 2020, 02:42 AM

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Thank you @Ramjade, I've been following some of your topics as well. I am currently using TSG via IBKR. I've been depositing via Transferwise as I am based in europe for now.

Just to add, as for UK, REIT is taxed at 20%.

QUOTE(Ramjade @ May 28 2020, 04:56 PM)
Nope cannot. Malaysia does not have tax treaty with US which sucks. Hence we pay the full 30% tax on dividend.

You want tax free dividend country you are only limited to 4.
SG
HK - some will have China dividend tax of 10%
India
UK

First step
Open a bank account in Singapore. It will help you tremendously.
https://forum.lowyat.net/topic/1440794

Second step
Open a cheap international brokerage .
https://forum.lowyat.net/topic/4843925
https://forum.lowyat.net/topic/4744515
https://forum.lowyat.net/topic/3396549

Regarding dividend tax, sometimes it's ok to bite them. When the yield is high. For the yield to be high, price must drop.
Some countries like Germany and Canada have cheaper discount of dividend. Tax.

All information is provided in the links above. Kindly browse through them.
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TSJaySd P
post May 29 2020, 02:43 AM

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QUOTE(MNet @ May 28 2020, 05:37 PM)
Does this applicable for realized gain as well?
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I think some countries do impose capital gain tax on stocks. But idk if that is applicable to foreign investor. Sorry.
Ramjade
post May 29 2020, 11:23 AM

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QUOTE(JaySd @ May 29 2020, 02:42 AM)
Thank you @Ramjade, I've been following some of your topics as well. I am currently using TSG via IBKR. I've been depositing via Transferwise as I am based in europe for now.

Just to add, as for UK, REIT is taxed at 20%.
*
DOn't use transferwise only. Checkout instarem, bigpay, moneymatch. They can be cheper than transferwise

 

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